Bosses at the Malawi Energy Regulatory Authority (MERA) face arrest following unlawful payment to Admarc to purchase maize for its depots.
Local media reports revealed that MERA paid K2.9 billion to Admarc to buy 10,000 metric tonnes of maize.
According to a report by audit firm PricewaterhouseCoopers, Mera used funds meant to cushion fuel price known as Price Stabilization Funds (PSF) to buy the maize.
The Public Finance Management Act takes the action to be “unlawful” and seeks to punish those behind such payments to pay a fine and serve a jail term of five years.
Section 88 of the Act under subsection 2 states that a person found with an offence of giving a payment without appropriate permit to such expenditure, is liable to a fine of K100,000 and serve a five year jail term.
Budget and finance committee of Parliament through its chairperson Rhino Chiphiko has since faulted the action by MERA arguing that it was a violation of law as the funds were meant to cushion Malawians from fuel hike shocks.
Meanwhile, the body has been approving fuel hike prices arguing that the commodity’s global prices are rising.
Malawi’s finance ministry is yet to act on the report as they are waiting for the board to make a decision.
Minister responsible Goodall Gondwe vowed to take the issue further if the board fails to make the decision on the matter shortly.